Commercial Finance The Financial Solutions Partnership Limited is able to make client introductions for both secured and unsecured commercial loans.
What is Commercial Finance? The need for commercial finance falls broadly into two areas:
Where the owners of trading businesses are requiring capital for the purchase of new or refinancing existing premises.
Commercial Mortgages Typically, most commercial financial loans are on a long term, secured basis where the loan is charged by the lender on the land and or buildings being purchased, or for additional security purposes, the personal assets of the owners.
Criteria Repayment Loans – typically 25-year terms; Interest Only – typically 10 years term.
Loan to Value - usually up to between 70% and 75%, 100% is possible with additional security.
Types of Security Commercial Units Shops & Offices Factories & warehouses Hotels & Guest Houses Nursing Homes Apartment blocks Flats Above Commercial Premises Houses for Multiple Occupation Restaurants & Public Houses Unsecured Commercial Loans Unsecured business loans are far riskier for the lender and, are more expensive for the borrower as a result. However, they serve their purpose where funding is not available secured. Not available as a secured mortgage.
How much can you borrow? In general terms most lenders will offer finance between 70-80% of the property value. 100% available with additional security. Different lenders have different products but in general rates are normally linked to the Bank of England base rate or LIBOR (London Interbank Offered Rate). The rate applicable is closely aligned to the loan to value (LTV) of the property you are financing.
WHERE IT IS OWNER OCCUPIER REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
NON OWNER OCCUPIER – THIS PRODUCT IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY AND WILL NOT BE COVERED UNDER THE FINANCIAL SERVICES COMPENSATION SCHEME FOR ENTERING INTO THIS TYPE OF ARRANGEMENT.
